DoD's $588.6M LOGCAP Base Life Support Contract Awarded to Amentum Services, Inc. for PACOM Area of Responsibility

Contract Overview

Contract Amount: $588,654,252 ($588.7M)

Contractor: Amentum Services, Inc.

Awarding Agency: Department of Defense

Start Date: 2015-08-14

End Date: 2025-08-21

Contract Duration: 3,660 days

Daily Burn Rate: $160.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: IGF::OT::IGF LOGCAP BASE LIFE SUPPORT SERVICES FOR THE PACOM AREA OF RESPONSIBILITY.

Place of Performance

Location: GERMANTOWN, MONTGOMERY County, MARYLAND, 20876

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $588.7 million to AMENTUM SERVICES, INC. for work described as: IGF::OT::IGF LOGCAP BASE LIFE SUPPORT SERVICES FOR THE PACOM AREA OF RESPONSIBILITY. Key points: 1. Contract provides essential life support services across a vast geographic area, indicating significant logistical complexity. 2. The firm-fixed-price contract type aims to control costs, but potential for cost overruns exists with long-term service delivery. 3. Amentum Services, Inc. is a large, established contractor, suggesting a degree of reliability but potentially limiting smaller competitor opportunities. 4. The contract duration of 3660 days (over 10 years) signifies a long-term commitment and potential for sustained performance or issues. 5. While the contract is for base life support, the scope could encompass a wide range of services, requiring careful performance monitoring. 6. The award value suggests a substantial operational footprint and reliance on contractor support for military personnel in the PACOM region.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging due to its broad scope and specific geographic focus. The firm-fixed-price structure is generally favorable for cost control. However, the extended duration and the nature of life support services in a potentially austere environment could lead to unforeseen costs or scope creep if not managed meticulously. Comparing it to similar large-scale, multi-year base support contracts in other regions would be necessary for a more precise value assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple bidders were likely considered. The presence of 3 bidders suggests a competitive process, though the specific details of the bidding and evaluation are not provided. A competitive process is generally expected to yield better pricing and terms for the government.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it encourages a wider range of offers, potentially leading to more cost-effective solutions and preventing monopolistic pricing.

Public Impact

Military personnel stationed in the PACOM Area of Responsibility benefit from essential life support services, ensuring operational readiness. Services delivered likely include food, lodging, laundry, and potentially facility maintenance, contributing to the well-being of deployed forces. The geographic impact is extensive, covering the vast PACOM AOR, which includes numerous bases and operational areas across the Pacific. Workforce implications include direct employment by Amentum Services, Inc. and its subcontractors, as well as indirect support to military and civilian personnel.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost escalation over the long contract term if not managed effectively.
Dependence on a single contractor for critical life support services could create vulnerabilities.
Scope creep is a risk given the broad nature of 'base life support' in a dynamic operational environment.

Positive Signals

Awarded through full and open competition, suggesting a robust bidding process.
Firm-fixed-price contract type provides cost certainty for the government.
Contractor has a significant presence and experience in large-scale support services.

Sector Analysis

This contract falls within the Facilities Support Services sector, a critical component of the broader defense contracting industry. This sector encompasses a wide range of services essential for the operation and maintenance of government facilities and installations. The market size for such services is substantial, driven by the ongoing needs of military branches worldwide. This specific contract represents a significant portion of spending within this niche, supporting a large geographic area and a substantial number of personnel.

Small Business Impact

The provided data does not indicate any specific small business set-asides for this contract, nor does it detail subcontracting plans. Given the scale and nature of the services, it is likely that Amentum Services, Inc. will engage subcontractors, potentially including small businesses, to fulfill specific requirements. However, without explicit set-aside goals or reporting, the direct impact on the small business ecosystem remains unclear.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Army and the Department of Defense's contracting and program management structures. Accountability measures are typically embedded within the contract terms, including performance standards, reporting requirements, and payment schedules tied to successful delivery. Transparency is facilitated through contract award databases, but detailed operational oversight and Inspector General jurisdiction would depend on specific performance issues or audits.

Related Government Programs

LOGCAP IV
Base Operations Support Services
Contingency Base Support
Logistics and Support Services
Defense Support Services

Risk Flags

Long contract duration increases risk of cost escalation and performance degradation.
Broad scope of 'base life support' can lead to scope creep.
Geographic dispersion and potential for austere conditions in PACOM AOR.
Dependence on a single contractor for critical services.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $588.7 million to AMENTUM SERVICES, INC.. IGF::OT::IGF LOGCAP BASE LIFE SUPPORT SERVICES FOR THE PACOM AREA OF RESPONSIBILITY.

Who is the contractor on this award?

The obligated recipient is AMENTUM SERVICES, INC..

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Army).

What is the total obligated amount?

The obligated amount is $588.7 million.

What is the period of performance?

Start: 2015-08-14. End: 2025-08-21.

What is the historical spending pattern for LOGCAP base life support services in the PACOM AOR?

Historical spending on LOGCAP base life support services in the PACOM AOR has been substantial, reflecting the strategic importance and operational tempo of the region. While specific figures for this contract's predecessors are not detailed here, the LOGCAP program itself has seen billions of dollars awarded over its various iterations to support military operations globally. The $588.6 million awarded to Amentum Services, Inc. for this base life support contract is a significant allocation, indicative of the ongoing need for comprehensive support services for U.S. forces operating across the Pacific. Previous LOGCAP contracts have often been awarded to large defense contractors and have evolved in scope and value based on geopolitical conditions and military requirements.

How does the per-unit cost of services under this contract compare to similar contracts in other regions?

A direct per-unit cost comparison is difficult without granular data on the specific services provided (e.g., cost per meal, cost per lodging unit, cost per laundry cycle) and the exact locations within the PACOM AOR. However, the firm-fixed-price nature of the contract suggests that the government has negotiated specific rates. Costs in the PACOM region can be influenced by factors such as transportation, local labor rates, and the logistical challenges of operating in remote or dispersed locations. Generally, life support services in high-cost-of-living or remote areas tend to be more expensive. A comprehensive analysis would require detailed breakdowns of service delivery and cost components across multiple contracts.

What is Amentum Services, Inc.'s track record with large-scale DoD support contracts?

Amentum Services, Inc. has a substantial track record in providing large-scale support services to the Department of Defense and other government agencies. The company was formed from the acquisition of AECOM's Management Services business and has inherited significant experience in areas such as base operations, logistics, and facility support. They have been awarded numerous large contracts, including previous LOGCAP task orders and other global support initiatives. Their experience suggests a capability to manage complex operations across diverse geographic locations. However, like any large contractor, they may have faced scrutiny or performance challenges on specific contracts, which would require a deeper dive into contract performance reports and IG investigations.

What are the primary risks associated with this long-term life support contract?

The primary risks associated with this long-term life support contract include potential cost overruns due to the extended duration (over 10 years) and the inherent uncertainties of operating in the PACOM AOR. Scope creep is another significant risk, as the definition of 'base life support' can be broad and may expand over time. Contractor performance degradation over such a long period is also a concern, potentially impacting the morale and readiness of military personnel. Furthermore, reliance on a single contractor for critical services creates a vulnerability; any disruption to Amentum's operations could have immediate and severe consequences. Geopolitical instability or changes in military posture within the PACOM region could also necessitate contract modifications or adjustments, introducing further risk.

How does the competition level (3 bidders) impact the value for taxpayers?

Having three bidders for this contract suggests a moderate level of competition. While more bidders generally lead to better price discovery and potentially lower costs for taxpayers, three offers still provide a basis for comparison and negotiation. It indicates that the market is not a monopoly but may not be as broadly contested as it could be. The government's ability to negotiate favorable terms and pricing will depend on the quality and competitiveness of the proposals submitted by these three entities. If the proposals were significantly different in scope or price, the perceived competition might be less impactful than the number of bidders suggests. Ultimately, the value for taxpayers hinges on whether these three bids truly represented the best possible value achievable in the market.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Facilities Support Services › Facilities Support Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › MANAGEMENT SUPPORT SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: PAE Government Services Inc.

Address: 20501 SENECA MEADOWS PKWY, GERMANTOWN, MD, 20876

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $588,654,252

Exercised Options: $588,654,252

Current Obligation: $588,654,252

Subaward Activity

Number of Subawards: 11

Total Subaward Amount: $9,176,726

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W52P1J07D0007

IDV Type: IDC

Timeline